Tax reduction

 　　The government work report proposes to deepen the VAT reform, reduce the current 16% tax rate in industries such as manufacturing to 13%, and reduce the current 10% tax rate in the transportation, construction and other industries to 9%, ensuring significant tax burdens in major industries. Reduce the tax rate of 6% of the first grade, but adopt measures such as increasing tax deductions for production and life service industries to ensure that the tax burden of all industries is only reduced, and continue to advance to the third rate and two files. The tax system is moving in a simplified direction.


　　As a pillar industry of the national economy, the steel industry is one of the main sources of national input tax, and it is greatly affected by tax reduction.


　　According to industry insiders, from the perspective of production, the tax rate reduction will help reduce the cost and burden of steel producers, thereby reducing and improving the asset-liability ratio of industrial enterprises. Taking the iron and steel enterprises in 2018 as an example, the main business income of the steel industry is 640.65 billion yuan, and the main business cost is 5685.54 billion yuan. If the cost of raw materials purchase is about 70% of the main business cost, the value-added tax will be reduced from 16% to 13%. % can reduce the value-added tax by about 72.6 billion yuan, accounting for about 1% of the industry's main business income. Secondly, tax cuts and reductions will help steel companies increase their investment, revitalize their innovation, deepen the tax cuts released by the VAT reform, reduce the government's allocation of resources, and maximize corporate dynamics.


　　"From the point of view of circulation, the reduction of tax rate has reduced the cost of all links in the steel industry chain." According to industry insiders, according to estimates, the cost of this round of tax reduction on coal, coke, ore and other raw materials is around tens of yuan. The impact on billet and rebar costs is around 100 yuan. The upstream cost dividend is gradually passed down, which may cause the average price of the end product to move down, but has little effect on the sales profit. In terms of transportation, the value-added tax of the transportation industry has dropped from 11% to 10% last year, and then to 9% this year, which is conducive to reducing the logistics cost of steel transportation. For steel mills or traders who do engineering distribution, they can reduce the arrival of goods. Cost, increase profits. In addition, the tax rate reduction will increase the competitive advantage of domestic steel exports, which is conducive to exports.